Inching Towards Bitcoin Derivatives

Bitcoin derivatives are more in demand than ever, as bitcoin company executives seek a way to hedge balance sheet risk. A liquid futures and options exchange for bitcoin will provide commercial hedging opportunities as well as increase overall price stability. This is not disputed.

What will be contentious, however, are the paths and methods necessary to get there. In this article, I examine exchange structure, exchange jurisdiction, the practicality of various contracts, and existing bitcoin futures markets.